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How do small businesses survive the epidemic? They do these 4 things


This Articles Is reprinted with permission from NerdWallet.

Nearly half of Americans bought more intentionally small and locally owned businesses during the epidemic, and many more particularly assembled with four special features of new businesses, according to a new Nerdwallet survey.

A survey of more than 2,000 U.S. adults found that 51% of Americans made a dedicated effort to make small business purchases from March 2020 through closures and bans compared to before the epidemic. The biggest reason to support the local economy was that consumers were pushing more money into small businesses, but small businesses that do all four would get extra attention, according to the data.

1. They offer takeout and delivery

According to the National Restaurant Association, restaurant revenue fell by about 2%% from expected levels in 2020, and 110,000 restaurants were temporarily or permanently closed. Diversifying from sit-down services can thus be a critical survival strategy, as one-third of those who made the effort to shop small and locally owned businesses during the epidemic said takeout and delivery options inspired that support, according to the NerdWallet survey.

See also: 4 Essential Ideas for Managing Business Success

2. There are fewer people inside them

According to NerdWallet data, small businesses have been a physical refuge for many consumers. More than a quarter of those who have tried to shop in a small business (27%) have increased their support because the organization is less likely to be crowded.

3. Other stores have what they don’t have

NerdWallet data also suggests small businesses that carry items that are often unavailable elsewhere can make a profit against larger competitors, highlighting the impact of good inventory management. Nearly a quarter of those who increased their support for small businesses during the epidemic (23%) said it was because their retailers got their desired product when the big retailers were out.

4. They work more online

Many consumers are shopping more online, many small businesses leaning towards e-commerce are benefiting. NerdWallet found that 1 in 5 Americans who tried to shop at a small and local business (22%) began to spend more in an organization that previously had only brick-mortar stores after expanding online offers.

See also: With potential fines on the menu, restaurants are involved in New York City vaccination orders.

These four strategies could continue to pay dividends for many small businesses, due to the fact that 81% of Americans now and at the end of the year plan to spend less if they don’t have much money in small and locally owned businesses. This can be especially good for small businesses on Saturday, which is November 27th.

The epidemic has provoked the entrepreneur

Epidemic-driven changes in consumer spending habits have also increased the potential for many new entrepreneurs. Despite facing small businesses during the epidemic, more than 1 in 10 Americans (12%) have started a business since March 2020, according to the Nerdwallet survey.

Read next: Most Americans say the public health benefits of the COVID-19 ban have become ‘expensive’

Although there were several motivations behind these entrepreneurial initiatives, 1 in 3 epidemics created opportunities to start a small business on its own. According to the survey, it created a market for the products and services that new entrepreneurs wanted to offer.

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Tina Orem writes for Nerdwallet. Email: torem@nerdwallet.com.



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